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I faced same issue on my device recently. I'm running the latest XCode 13.4 & XCode 14 (beta) on macOS 12.4 (Monterey).
In my case the issue was with EdenFS. It is a virtual file-system connected to a network. I previously opened an XCode project from this disk & no longer using it but XCode is still trying to access it in my opinion, which results in this 'Not responding' state.
What I did was 'unmounted' the file system and XCode started to work fine afterwards.
Don't know if it is same for everyone but this is one of the possibilities for someone using this kind of system.